The ninja village of FF7, Yuffie's hometown. You can go to Wutai as a sidequest, but Yuffie will steal all your materia. Complete the quest and you get it all back, but she'll put it back in the wrong order.

Before the events of FF7, Wutai was at war with the infamious company Shinra, and suffered great losses, becoming a tourist town to stay afloat, adding to Yuffie's anger tword Shinra.